(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: Property/Casualty Asset Risk
CHICAGO, August 22 (Fitch) Fitch Ratings has published a new
examining U.S. property/casualty (P/C) insurers' asset risk
The U.S. P/C Insurers Asset Risk Dashboard discusses the
composition of Fitch's
U.S. P/C insurer's investment portfolio, which has remained
consistent over time. Earnings from investments face further
portfolio yields have declined by over 100 basis points (bps)
since 2007, to
3.4% in 2013.
Risk asset holdings have increased to 29% of net invested assets
in 2013, from
21% in 2009, but more than half of this change is tied to the
equity values, rather than new risk asset purchases or a
meaningful shift in
The report provides a breakdown by type of investment for the
industry from 2009
to 2013, as well as for the 10 companies with the highest
allocation to risk
assets. Common equities remain the most prominent risk asset
The report also looks at the insurers with the largest
allocation to Schedule BA
assets (including hedge funds and private equities as well as
investments) and identifies the five largest holders of hedge
funds and private
equities (alternative investments).
Factors that may lead to future marginally adjusted asset
wider usage of more sophisticated asset modeling, outsourcing to
asset managers, and competitive pressures to generate higher
The 'Property/Casualty Asset Risk Dashboard' is available on
Fitch's website at
'www.fitchratings.com' or by clicking on the link.
Martha M. Butler, CFA
Fitch Ratings, Inc.
70 West Madison St.
Chicago, IL 60602
James B. Auden, CFA
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549,
Additional information is available at 'www.fitchratings.com'.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
here. IN ADDITION,
ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS,
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE
FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES.
DETAILS OF THIS
SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH